WILMINGTON — An asset management firm has acquired the long-standing
Noramco pharmaceutical plant, one of Delaware’s oldest active pharmaceutical ingredients (API) manufacturers, on the final day of 2024.
New York-based
Fortress Investment Group acquired the plant for $75 million on Dec. 31, according to county land records. The company is considered a heavy hitter in private credit, equity, and real estate and has been expanding its hedge funds with $48 billion currently under management.
Fortress representatives confirmed the sale to the Delaware Business Times, but declined to comment further.
The 90,000 square-foot warehouse sits at the edge of the 7th Street Peninsula on Wilmington’s east side. Noramco manufactures the APIs for more than 350 products sold in 30 countries, including those that treat attention deficit hyperactivity disorder (ADHD), manage pain and prevent drug abuse.
Noramco President and Group CFO Alan Manjewski told DBT that it had signed a 20-year lease with Fortress. The move was a strategic move for the pharmaceutical ingredient manufacturer to allow for more capital to be freed up to be invested back in Normaco
“By leasing the land and buildings rather than owning them, it provides Noramco more resources to continue to invest in the site’s equipment and capabilities,” Manjewski wrote in an email to DBT. “This type of ‘sale/leaseback’ transaction is common among privately-owned companies.”
Established in Wilmington in 1979, Noramco has served as a subsidiary of Johnson & Johnson for decades, but in 2016 the company was acquired by global investment firm SK Capital in a deal reportedly worth up to
$800 million. Noramco currently employs 800 across its network across the globe.
Over the years, the Wilmington plant has added about 10,000 square feet. Today, it employs 175 people. Noramco also specializes in controlled substances and has fine-tuned its processes to advance ingredients in pharmaceuticals from clinical stages to commercial ready to implement projects.
The deal translates to $833.33 per square foot of space.